GENETEC CORPORATION (4492) Stock Price

Market cap
¥5.3B
P/E ratio
11.7x
Genetec designs embedded systems for automotive and mobile devices, provides 3D CAD software and manufacturing IoT solutions, and offers GPS-based safety apps.

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Business Overview

Genetec operates three main business segments: System Solutions, Engineering Solutions, and GPS. These businesses are comprised of Genetec and two consolidated subsidiaries.

In the System Solutions segment, Genetec has been engaged in the design and development of embedded systems for mobile communications devices and automotive applications since its establishment in 1985. The company has particular strengths in integrated hardware and software system development for car electronics, digital consumer electronics, and semiconductor manufacturing equipment.

In the Engineering Solutions segment, Genetec provides license sales and technical support for 3D CAD/CAM software, robot teaching software, and product lifecycle management software. The company also develops and sells manufacturing IoT solutions, including monitoring platforms such as "Surve-i" and "GC Monitor."

In the GPS segment, Genetec offers "Kokodayo," a disaster prevention support application. The app automatically shares family members' locations in coordination with earthquake early warning alerts, enabling safety confirmation. The company aims to expand this service to include monitoring solutions for elderly and children in the future.

Management Policy

Genetec positions its growth strategy around "demonstrating true value as a solution partner." This strategy rests on two pillars: three business growth strategies covering System Solutions, Engineering Solutions, and GPS operations, alongside a management foundation strategy. Specifically, the company aims to expand its business domains, strengthen solutions in manufacturing, and expand services on its platform.

The medium-term management plan covers the three-year period from fiscal year 2023 through 2025, with revenue, operating profit, and operating profit margin set as key management targets. Through this plan, Genetec pursues sustainable growth and aims to achieve its management objectives. Specific numerical targets can be found in the medium-term management plan announced on May 31, 2023.

Genetec prioritizes strengthening its management foundation by expanding and upgrading its workforce. The company reinforces new graduate and mid-career hiring and enhances technical education and training programs to develop talent capable of supporting business growth. Additionally, through strengthened sales capabilities, rigorous project management, and quality improvements, the company works to enhance customer satisfaction.

Furthermore, Genetec pursues the creation of group synergies and strengthens its management structure. By reinforcing collaboration across group companies and enhancing internal control systems, the company aims to increase corporate value. Through these efforts, Genetec seeks to achieve sustainable growth and contribute to society.

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